Charleston, SC (PRWEB) November 13, 2011
A new financial service providing cost-conscious estimates of radio station value has been launched by Radio Valuations, LLC of Charleston, SC.
http://www.radiovaluations.com enables lenders to get updated estimates for radio stations in their portfolios while radio station operators can get an arms-length opinion of a stations worth in today’s economy.
“Many, perhaps most, stations simply don’t have sufficient profit in today’s economy to generate the cash flow needed to make traditional valuation methods work,” says Andrew Guest, managing member of Radio Valuations LLC, “so we use a method called Popcount based on population served and comparables from similar radio markets rather than on cash flow.”
Traditional cash flow multiples also don’t work for new stations, or stations changing their programming, which usually attracts an entirely different set of advertisers and amounts to starting at or near zero in terms of revenue.
Guest has been using the Popcount methodology for Desktop Valuations since 1994 and has placed values on more than 200 stations in 40 states. “One thing our clients really like is that our simplified process enables current estimates at a fraction of the cost of full appraisals,” he said.
“We maintain rolling databases tracking radio station sales, and we’re seeing modest increases lately in both AM and FM values, which is a refreshing change and an encouraging development,” said Guest, who observed that over half his clients are banks updating radio loan portfolios.
“Reaching out via RadioValuations.com is a new direction for us, as all our valuation business in the past has been via referral,” he added. “The idea came from a bank client who suggested that there would be a lot of demand for such a product if the financial community knew about it.”
Guest has been in the communications industry for over 40 years, most recently at American Media Services, LLC, which he co-founded in 1997 and which grew into the nation’s leading radio station development firm, incorporating technical services, brokerage, and station ownership. Guest has had ownership interests in 25 radio stations.
He is a native of Blackshear, Georgia and graduate of the University of Georgia.
About Radio Valuations, LLC
Radio Valuations LLC (http://www.RadioValuations.com) is an affiliate of Guest Media Technology, LLC, Mount Pleasant (Charleston), SC, whose other services include radio station brokerage and management consultation. (843)606-2012.
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